Intrinsic value of Becton Dickinson - BDX

Previous Close

$231.45

  Intrinsic Value

$1,182

stock screener

  Rating & Target

str. buy

+411%

Previous close

$231.45

 
Intrinsic value

$1,182

 
Up/down potential

+411%

 
Rating

str. buy

We calculate the intrinsic value of BDX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 61.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  41.00
  37.40
  34.16
  31.24
  28.62
  26.26
  24.13
  22.22
  20.50
  18.95
  17.55
  16.30
  15.17
  14.15
  13.24
  12.41
  11.67
  11.00
  10.40
  9.86
  9.38
  8.94
  8.55
  8.19
  7.87
  7.58
  7.33
  7.09
  6.88
  6.70
Revenue, $m
  17,051
  23,428
  31,431
  41,252
  53,058
  66,990
  83,155
  101,631
  122,463
  145,666
  171,234
  199,140
  229,344
  261,798
  296,449
  333,245
  372,137
  413,086
  456,061
  501,043
  548,025
  597,013
  648,029
  701,107
  756,295
  813,656
  873,264
  935,208
  999,588
  1,066,517
Variable operating expenses, $m
  14,539
  19,473
  25,665
  33,263
  42,398
  53,177
  65,685
  79,981
  96,099
  114,051
  132,489
  154,080
  177,450
  202,561
  229,371
  257,841
  287,933
  319,617
  352,868
  387,672
  424,023
  461,926
  501,399
  542,467
  585,167
  629,549
  675,670
  723,597
  773,410
  825,195
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  14,539
  19,473
  25,665
  33,263
  42,398
  53,177
  65,685
  79,981
  96,099
  114,051
  132,489
  154,080
  177,450
  202,561
  229,371
  257,841
  287,933
  319,617
  352,868
  387,672
  424,023
  461,926
  501,399
  542,467
  585,167
  629,549
  675,670
  723,597
  773,410
  825,195
Operating income, $m
  2,513
  3,956
  5,766
  7,988
  10,660
  13,812
  17,470
  21,651
  26,364
  31,614
  38,745
  45,060
  51,894
  59,237
  67,078
  75,404
  84,204
  93,469
  103,193
  113,371
  124,002
  135,087
  146,630
  158,640
  171,128
  184,107
  197,594
  211,610
  226,178
  241,322
EBITDA, $m
  4,808
  6,607
  8,864
  11,633
  14,962
  18,891
  23,450
  28,660
  34,535
  41,078
  48,288
  56,158
  64,676
  73,828
  83,599
  93,976
  104,944
  116,491
  128,611
  141,295
  154,544
  168,359
  182,746
  197,714
  213,277
  229,453
  246,263
  263,731
  281,887
  300,761
Interest expense (income), $m
  435
  1,019
  1,521
  2,205
  3,064
  4,117
  5,384
  6,878
  8,613
  10,595
  12,830
  15,319
  18,062
  21,056
  24,297
  27,778
  31,496
  35,444
  39,616
  44,009
  48,620
  53,446
  58,486
  63,742
  69,215
  74,910
  80,830
  86,984
  93,379
  100,025
  106,932
Earnings before tax, $m
  1,494
  2,435
  3,561
  4,925
  6,543
  8,428
  10,592
  13,038
  15,769
  18,784
  23,426
  26,997
  30,838
  34,941
  39,299
  43,908
  48,760
  53,853
  59,184
  64,752
  70,556
  76,601
  82,888
  89,425
  96,218
  103,276
  110,610
  118,231
  126,153
  134,390
Tax expense, $m
  403
  657
  962
  1,330
  1,767
  2,276
  2,860
  3,520
  4,258
  5,072
  6,325
  7,289
  8,326
  9,434
  10,611
  11,855
  13,165
  14,540
  15,980
  17,483
  19,050
  20,682
  22,380
  24,145
  25,979
  27,885
  29,865
  31,922
  34,061
  36,285
Net income, $m
  1,090
  1,777
  2,600
  3,595
  4,776
  6,153
  7,732
  9,518
  11,511
  13,713
  17,101
  19,708
  22,512
  25,507
  28,689
  32,053
  35,595
  39,313
  43,204
  47,269
  51,506
  55,918
  60,508
  65,280
  70,239
  75,392
  80,745
  86,309
  92,091
  98,105

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  37,640
  51,718
  69,385
  91,063
  117,125
  147,880
  183,566
  224,352
  270,337
  321,558
  377,999
  439,603
  506,279
  577,921
  654,413
  735,639
  821,495
  911,890
  1,006,758
  1,106,055
  1,209,767
  1,317,909
  1,430,527
  1,547,697
  1,669,525
  1,796,149
  1,927,735
  2,064,477
  2,206,596
  2,354,342
Adjusted assets (=assets-cash), $m
  37,640
  51,718
  69,385
  91,063
  117,125
  147,880
  183,566
  224,352
  270,337
  321,558
  377,999
  439,603
  506,279
  577,921
  654,413
  735,639
  821,495
  911,890
  1,006,758
  1,106,055
  1,209,767
  1,317,909
  1,430,527
  1,547,697
  1,669,525
  1,796,149
  1,927,735
  2,064,477
  2,206,596
  2,354,342
Revenue / Adjusted assets
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
Average production assets, $m
  15,585
  21,413
  28,728
  37,704
  48,495
  61,228
  76,004
  92,891
  111,931
  133,139
  156,508
  182,014
  209,621
  239,284
  270,954
  304,586
  340,133
  377,561
  416,840
  457,953
  500,894
  545,670
  592,298
  640,811
  691,253
  743,681
  798,163
  854,780
  913,623
  974,796
Working capital, $m
  1,824
  2,507
  3,363
  4,414
  5,677
  7,168
  8,898
  10,875
  13,104
  15,586
  18,322
  21,308
  24,540
  28,012
  31,720
  35,657
  39,819
  44,200
  48,799
  53,612
  58,639
  63,880
  69,339
  75,018
  80,924
  87,061
  93,439
  100,067
  106,956
  114,117
Total debt, $m
  28,163
  40,833
  56,733
  76,244
  99,700
  127,379
  159,496
  196,204
  237,590
  283,689
  334,486
  389,929
  449,938
  514,416
  583,259
  656,362
  733,632
  814,988
  900,369
  989,737
  1,083,078
  1,180,406
  1,281,761
  1,387,214
  1,496,860
  1,610,821
  1,729,248
  1,852,316
  1,980,224
  2,113,195
Total liabilities, $m
  33,876
  46,546
  62,446
  81,957
  105,413
  133,092
  165,209
  201,917
  243,303
  289,402
  340,199
  395,642
  455,651
  520,129
  588,972
  662,075
  739,345
  820,701
  906,082
  995,450
  1,088,791
  1,186,119
  1,287,474
  1,392,927
  1,502,573
  1,616,534
  1,734,961
  1,858,029
  1,985,937
  2,118,908
Total equity, $m
  3,764
  5,172
  6,938
  9,106
  11,713
  14,788
  18,357
  22,435
  27,034
  32,156
  37,800
  43,960
  50,628
  57,792
  65,441
  73,564
  82,149
  91,189
  100,676
  110,606
  120,977
  131,791
  143,053
  154,770
  166,953
  179,615
  192,773
  206,448
  220,660
  235,434
Total liabilities and equity, $m
  37,640
  51,718
  69,384
  91,063
  117,126
  147,880
  183,566
  224,352
  270,337
  321,558
  377,999
  439,602
  506,279
  577,921
  654,413
  735,639
  821,494
  911,890
  1,006,758
  1,106,056
  1,209,768
  1,317,910
  1,430,527
  1,547,697
  1,669,526
  1,796,149
  1,927,734
  2,064,477
  2,206,597
  2,354,342
Debt-to-equity ratio
  7.480
  7.900
  8.180
  8.370
  8.510
  8.610
  8.690
  8.750
  8.790
  8.820
  8.850
  8.870
  8.890
  8.900
  8.910
  8.920
  8.930
  8.940
  8.940
  8.950
  8.950
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.970
  8.980
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,090
  1,777
  2,600
  3,595
  4,776
  6,153
  7,732
  9,518
  11,511
  13,713
  17,101
  19,708
  22,512
  25,507
  28,689
  32,053
  35,595
  39,313
  43,204
  47,269
  51,506
  55,918
  60,508
  65,280
  70,239
  75,392
  80,745
  86,309
  92,091
  98,105
Depreciation, amort., depletion, $m
  2,296
  2,651
  3,097
  3,645
  4,303
  5,079
  5,980
  7,010
  8,171
  9,464
  9,543
  11,098
  12,782
  14,590
  16,522
  18,572
  20,740
  23,022
  25,417
  27,924
  30,542
  33,273
  36,116
  39,074
  42,150
  45,346
  48,668
  52,121
  55,709
  59,439
Funds from operations, $m
  3,386
  4,429
  5,697
  7,240
  9,079
  11,232
  13,712
  16,527
  19,682
  23,176
  26,644
  30,806
  35,293
  40,097
  45,210
  50,625
  56,335
  62,335
  68,621
  75,193
  82,048
  89,191
  96,624
  104,354
  112,389
  120,738
  129,414
  138,429
  147,800
  157,543
Change in working capital, $m
  531
  682
  856
  1,051
  1,263
  1,491
  1,730
  1,977
  2,229
  2,483
  2,736
  2,986
  3,232
  3,473
  3,708
  3,937
  4,162
  4,382
  4,598
  4,813
  5,027
  5,242
  5,459
  5,679
  5,905
  6,138
  6,378
  6,628
  6,889
  7,161
Cash from operations, $m
  2,856
  3,746
  4,841
  6,189
  7,815
  9,741
  11,982
  14,550
  17,453
  20,694
  23,908
  27,820
  32,061
  36,625
  41,503
  46,688
  52,173
  57,953
  64,023
  70,380
  77,021
  83,949
  91,165
  98,675
  106,484
  114,600
  123,036
  131,801
  140,912
  150,382
Maintenance CAPEX, $m
  -674
  -950
  -1,306
  -1,752
  -2,299
  -2,957
  -3,733
  -4,634
  -5,664
  -6,825
  -8,118
  -9,543
  -11,098
  -12,782
  -14,590
  -16,522
  -18,572
  -20,740
  -23,022
  -25,417
  -27,924
  -30,542
  -33,273
  -36,116
  -39,074
  -42,150
  -45,346
  -48,668
  -52,121
  -55,709
New CAPEX, $m
  -4,526
  -5,829
  -7,315
  -8,976
  -10,791
  -12,734
  -14,776
  -16,887
  -19,040
  -21,208
  -23,369
  -25,506
  -27,607
  -29,663
  -31,671
  -33,631
  -35,548
  -37,428
  -39,279
  -41,113
  -42,941
  -44,775
  -46,628
  -48,513
  -50,442
  -52,428
  -54,482
  -56,617
  -58,843
  -61,173
Cash from investing activities, $m
  -5,200
  -6,779
  -8,621
  -10,728
  -13,090
  -15,691
  -18,509
  -21,521
  -24,704
  -28,033
  -31,487
  -35,049
  -38,705
  -42,445
  -46,261
  -50,153
  -54,120
  -58,168
  -62,301
  -66,530
  -70,865
  -75,317
  -79,901
  -84,629
  -89,516
  -94,578
  -99,828
  -105,285
  -110,964
  -116,882
Free cash flow, $m
  -2,345
  -3,033
  -3,780
  -4,539
  -5,274
  -5,950
  -6,527
  -6,971
  -7,251
  -7,339
  -7,579
  -7,229
  -6,644
  -5,820
  -4,759
  -3,465
  -1,947
  -214
  1,722
  3,849
  6,156
  8,631
  11,264
  14,046
  16,968
  20,023
  23,207
  26,516
  29,947
  33,500
Issuance/(repayment) of debt, $m
  9,293
  12,670
  15,900
  19,511
  23,456
  27,679
  32,118
  36,707
  41,387
  46,099
  50,797
  55,443
  60,009
  64,478
  68,842
  73,104
  77,270
  81,356
  85,381
  89,367
  93,341
  97,328
  101,356
  105,453
  109,646
  113,962
  118,427
  123,068
  127,908
  132,971
Issuance/(repurchase) of shares, $m
  584
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  9,877
  12,670
  15,900
  19,511
  23,456
  27,679
  32,118
  36,707
  41,387
  46,099
  50,797
  55,443
  60,009
  64,478
  68,842
  73,104
  77,270
  81,356
  85,381
  89,367
  93,341
  97,328
  101,356
  105,453
  109,646
  113,962
  118,427
  123,068
  127,908
  132,971
Total cash flow (excl. dividends), $m
  7,532
  9,637
  12,120
  14,972
  18,182
  21,729
  25,591
  29,736
  34,136
  38,760
  43,218
  48,214
  53,365
  58,658
  64,084
  69,639
  75,323
  81,142
  87,103
  93,217
  99,497
  105,959
  112,620
  119,499
  126,613
  133,985
  141,634
  149,584
  157,855
  166,471
Retained Cash Flow (-), $m
  -1,674
  -1,408
  -1,767
  -2,168
  -2,606
  -3,075
  -3,569
  -4,079
  -4,599
  -5,122
  -5,644
  -6,160
  -6,668
  -7,164
  -7,649
  -8,123
  -8,586
  -9,040
  -9,487
  -9,930
  -10,371
  -10,814
  -11,262
  -11,717
  -12,183
  -12,662
  -13,159
  -13,674
  -14,212
  -14,775
Prev. year cash balance distribution, $m
  10,858
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  16,716
  8,229
  10,354
  12,804
  15,575
  18,654
  22,022
  25,658
  29,537
  33,638
  37,574
  42,054
  46,697
  51,494
  56,435
  61,516
  66,738
  72,102
  77,616
  83,287
  89,126
  95,145
  101,359
  107,782
  114,430
  121,322
  128,476
  135,909
  143,643
  151,697
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  16,027
  7,534
  9,011
  10,543
  12,073
  13,538
  14,878
  16,037
  16,968
  17,635
  17,843
  17,946
  17,755
  17,287
  16,568
  15,633
  14,521
  13,278
  11,951
  10,583
  9,219
  7,895
  6,643
  5,490
  4,451
  3,540
  2,757
  2,103
  1,568
  1,142
Current shareholders' claim on cash, %
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5
  94.5

Becton, Dickinson and Company (BD) is a global medical technology company engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products. The Company operates through two segments: BD Medical and BD Life Sciences. The BD Medical segment produces an array of medical technologies and devices that are used to help improve healthcare delivery in a range of settings. BD Medical consists of various business units, including diabetes care, medication and procedural solutions, medication management solutions and pharmaceutical systems. The BD Life Sciences segment provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a range of infectious diseases, healthcare-associated infections and cancers. The Company's BD Life Sciences segment consists of various business units, including preanalytical systems, diagnostic systems and biosciences.

FINANCIAL RATIOS  of  Becton Dickinson (BDX)

Valuation Ratios
P/E Ratio 48
Price to Sales 4.4
Price to Book 4.1
Price to Tangible Book
Price to Cash Flow 20.7
Price to Free Cash Flow 28.9
Growth Rates
Sales Growth Rate -3.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 1.3%
Cap. Spend. - 3 Yr. Gr. Rate 2.2%
Financial Strength
Quick Ratio 70
Current Ratio 0
LT Debt to Equity 144.2%
Total Debt to Equity 145.7%
Interest Coverage 3
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 5.1%
Return On Total Capital 4.3%
Ret/ On T. Cap. - 3 Yr. Avg. 4.7%
Return On Equity 10.7%
Return On Equity - 3 Yr. Avg. 11.8%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 49.1%
Gross Margin - 3 Yr. Avg. 47.6%
EBITDA Margin 20.7%
EBITDA Margin - 3 Yr. Avg. 20.1%
Operating Margin 11.6%
Oper. Margin - 3 Yr. Avg. 11.2%
Pre-Tax Margin 8.1%
Pre-Tax Margin - 3 Yr. Avg. 8%
Net Profit Margin 9.1%
Net Profit Margin - 3 Yr. Avg. 7.9%
Effective Tax Rate -12.7%
Eff/ Tax Rate - 3 Yr. Avg. 0.8%
Payout Ratio 61.5%

BDX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BDX stock intrinsic value calculation we used $12093 million for the last fiscal year's total revenue generated by Becton Dickinson. The default revenue input number comes from 0001 income statement of Becton Dickinson. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BDX stock valuation model: a) initial revenue growth rate of 41% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for BDX is calculated based on our internal credit rating of Becton Dickinson, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Becton Dickinson.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BDX stock the variable cost ratio is equal to 88.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for BDX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Becton Dickinson.

Corporate tax rate of 27% is the nominal tax rate for Becton Dickinson. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BDX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BDX are equal to 91.4%.

Life of production assets of 16.4 years is the average useful life of capital assets used in Becton Dickinson operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BDX is equal to 10.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $12948 million for Becton Dickinson - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 267.564 million for Becton Dickinson is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Becton Dickinson at the current share price and the inputted number of shares is $61.9 billion.

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